How to apply for Canara Bank Home Loan: A nice house for yourself and your family is a dream that almost everyone wishes to come true. Everyone fantasizes about the idea of purchasing the best home to live in with numerous plans and ideas.
It is no surprise that in the earlier eras, the prices of plots and land were way lesser as compared to the modern-day world, and today, it is certainly a huge deal for nearly everyone to invest in a new home.
The costs are too high in today’s times and not everyone can afford to pay the full amount for their home, especially without a home loan from loan-offering organizations.
Lenders and some well-known banks have been acting like true saviours in this regard and have helped make plenty of dreams come true and continue to do so to the present date.
With modern-day advanced technology, applying for a home loan has become incredibly easy and with prestigious banks like Canara Bank, the process only becomes simpler than ever.
In this article, we’re going to enlighten you on everything you need to know about Canara Bank Home Loan including the eligibility criteria, documentation required, Canara Bank home loan interest rate 2022, and so on.
So if you wish to apply for Canara Bank Home Loan anytime soon, continue reading till the end.
Canara Bank Home Loan Interest Rate
Canara Bank Home Loan Interest Rate is one of the most affordable ones that is offered to the applicants.
One can easily avail of Canara Bank Home Loan with the repayment tenure of the home loan being as long as 30 years.
And about the Canara Bank Home Loan Interest Rate, it starts at 6.90% per annum.
Important note: The above-mentioned Canara Bank Home Loan Interest Rate of 6.90% per annum applies only to female applicants of the home loan.
For all other individuals applying for the home loan, the Canara Bank Home Loan Interest Rate starts at 6.95% per annum.
Canara Bank Home Loan Eligibility Criteria
- Age: Should be in the age group of 21-60
- Employment Type: Individuals who are working on a salary basis or are self-employed
- Work Experience For Salaried Applicants: Minimum employment term of 3 years
- Work Experience For Self-employed Applicants: Minimum employment term of 3 years
Important Note: Any individual who exceeds the age of 60 will also be able to apply for the Canara Bank Home loan, however, they must fulfil all the stipulations provided by the bank.
Canara Bank Home Loan Eligibility Criteria: Salary
Several factors are considered when checking the eligibility of an individual to apply for Canara Bank Home Loan.
With Canara Bank Home Loan Calculator, it is pretty simple to determine an estimated amount of home loan that the individual is going to be eligible for.
This will be entirely based on the information that the applicant is going to provide.
You can easily use this Canara Bank Home Loan Calculator for assessing your eligibility. The following is the list of different monthly incomes and the amount of Canara Bank Home loan that it is eligible for.
Note that the repayment term of the loan is presumed to be 30 years for the below-mentioned list with the Canara Bank Home Loan Interest Rate being at 6.90% per annum.
Monthly Income Amount of Home Loan
- Rs.25,000: Rs.15,18,372
- Rs.30,000: Rs.20,49,802
- Rs.35,000: Rs.23,91,436
- Rs.40,000: Rs.27,33,070
- Rs.45,000: Rs.30,74,703
- Rs.50,000: Rs.34,16,337
- Rs.55,000: Rs.41,75,523
- Rs.60,000: Rs.45,55,116
- Rs.65,000: Rs.49,34,709
- Rs.70,000: Rs.53,14,302
- Rs.75,000: Rs.56,93,895
Important Note: All the above-mentioned numbers in the list are simply indicative as well as based on specific assumptions.
The numbers are subject to differ based on some other relevant aspects as well such as the individual’s age, credit, score, and so on.
Canara Bank Home Loan Eligibility Criteria: Age
The maximum loan repayment term for a Canara Bank Home Loan largely depends on the applicant’s age.
Applying for the home loan at an earlier age is going to make the individual eligible for the most extended repayment tenure of the Canara Bank home loan.
The below-mentioned list displays the maximum home loan repayment term that an individual is going to be eligible for based on his/her age.
Age: Maximum Home Loan Repayment Term
- 21-40 years: 30 years of repayment tenure
- 41 years: 29 years of repayment tenure
- 42 years: 28 years of repayment tenure
- 43 years: 27 years of repayment tenure
- 44 years: 26 years of repayment tenure
- 45 years: 25 years of repayment tenure
- 46 years: 24 years of repayment tenure
- 47 years: 23 years of repayment tenure
- 48 years: 22 years of repayment tenure
- 49 years: 21 years of repayment tenure
- 50 years: 20 years of repayment tenure
- 51 years: 19 years of repayment tenure
- 52 years: 18 years of repayment tenure
- 53 years: 17 years of repayment tenure
- 54 years: 16 years of repayment tenure
- 55 years: 15 years of repayment tenure
Canara Bank Home Loan Eligibility Criteria: Credit Score
The following list shows different credit score ratings that are considered good, average, and poor.
- Good: Credit Score Rating of 750 or above
- Average: Credit Score Rating from 600 to 750
- Poor: Credit Score Rating of below 600
Canada Bank Home Loan: CIBIL Score
A greater CIBIL score in your application is only going to enhance the odds of the approval of your Canara Bank home loan application.
Generally, if your CIBIL score is 650 or more, then the chances of your application getting approved are most likely high.
Canara Bank Home Loan Eligibility Criteria: For Women Applicants
The eligibility norms for all the female applicants are similar to that of other borrowers. However, the bank does have one special thing to offer for its female borrowers which is the Canara Bank Home Loan Interest Rate.
Canada Bank Home Loan Interest for women applicants is 0.5% lower in comparison to the rate of interest that applies to other borrowers.
Also read – IIFL Home loan
Documentation Required For Canara Bank Home Loan
The following is the list of all the necessary documents that the applicant will be required to submit while applying for a Canara Bank home loan:
- Designated Loan Application along with two passport size pictures of the applicant or guarantor
- Sale Agreement
- Sale Deed
- Copy of the blueprint that is approved for the proposed formation, expansion, or addition
- Comprehensive cost estimate or valuation document from Banks Panel Chartered Engineer or Architect
- Allowance note of Co-operative Housing Society, Apartment Owners Association, Housing Board, NOC, Association, or Builders
- Legal Scrutiny Report, Past 13 years’ EC, Paid receipt of Property Tax, Khata as well as authorization for mortgage
- For salaried individuals, Salary Certificate as well as Form No.16
- For non-salaried individuals, IT Returns stored for the last three inspection years
- For self-employed individuals, A short note on the quality of job, year of founding, sector of the organization, and so on
- For self-employed individuals, Balance Sheet as well as P&L Account of the last three years
Factors Influencing Eligibility of the Individual for Canara Bank Home Loan
Numerous factors may influence the eligibility of an individual while applying for Canara Bank Home Loan. The following are all such aspects:
- Applicant’s age
- Applicant’s credit score rating
- Applicant’s repayment ability of the home loan (salary record)
- Applicant’s record of credit
- Applicant’s record of loan repayment in the past (if any)
- Any other prevailing loans wherein the applicant may be the co-applicant for the same
Other things to keep in mind
An individual’s credit report is going to be composed of the entire record of the loans as well as credit cards that are borrowed and used by him/her, together with how regular the individual was in paying the credit back, any late payments, and so on.
In case any borrower applying for Canara Bank Home Loan has the words “settled” or/and “written off” printed against their credit account, their home loan application is most likely going to be immediately dismissed as these terms seem to be proof that the individual has defaulted on their loan and their lender has resolved the report realizing that the borrower is not going to pay back any balance.
Just like that, in case there are any kind of discrepancies found such as if the applicant’s date of birth differs from what is on the home loan application, the application is yet again going to be immediately dismissed.
Therefore, it may be for your best to get rid of any such discrepancies beforehand so that you don’t come across such problems with your home loan and get it approved rightfully and as soon as possible.
Also read – Bank of Baroda Home loan
Payment Methods for Canara Bank Home Loan EMIs
The Canara Bank home loan allows the borrower to repay their loan in three different ways that are as follows:
- Standing Instruction or SI: In case you are a current account holder with Canara Bank, it will be fair to say that Standing Instruction is certainly the best mode of loan repayment for you. In this case, your home loan EMI amount is going to be automatically deducted from your Canara Bank account at the end of every monthly cycle.
- Electronic Clearing Service or ECS: The second mode of loan repayment can come into action if you are someone with a bank account in some other bank than Canara Bank and would wish your home loan EMIs to be automatically deducted from this account after the end of every monthly cycle.
- Post-Dated Cheques or PDCs: Applicants can also choose to submit post-dated cheques for their home loan EMIs from their non-Canara Bank accounts at their closest Loan Centre of Canara Bank. It is worth mentioning that Individuals who choose to go for this option must make sure to submit a new batch of PDCs promptly. Also, please keep in mind that Post Dated Cheques or PDCs will only be received at non-ECS sites.
In our opinion, we recommend that you go for either the first or second modes of home loan EMI payment, which are SI and ECS modes.
Both of these ways are much faster as well as less prone to discrepancies as compared to the last payment method of PDCs.
Canara Bank Home Loan Calculator for EMI
To make life easier for their customers and know precisely how much they have to pay each month, Canara Bank Home Loan Calculator for EMI calculation is a truly effective tool.
The significance of this tool is that individuals are going to know the exact amount of EMI that they will be required to reimburse based on their home loan requirement. This will assist them in planning far ahead.
Final Words
A home loan is a significant investment that is invested in a person and goes on to last for long years.
There must be no mistake while applying for a home loan and this is the sole responsibility of the applicant to deal with.
Canada Bank Home Loan Interest Rate 2022 is certainly one of the most promising rates available in the market today and that is a major boon for all individuals looking to apply for a home loan.
So we suggest that you don’t waste a second any further and head directly to apply for Canara Bank Home Loan.
Frequently Asked Questions (FAQs)
What is the maximum home loan amount that an individual can borrow as per the Canara Bank Home Loan policy?
As per the Canara Bank Home Loan Program, an individual who works on a salary basis is eligible for a home loan amount of as much as 6 times the gross yearly salary.
For self-employed applicants, they can apply for a home loan amount of as much as 6 times the average gross yearly income.
What is the minimum employment experience needed to be qualified for applying for Canara Bank Home Loan?
In the case of individuals who work on a salary basis, the borrower must have been serving under the title for a minimum of 3 years with confirmed service.
For self-employed borrowers or businesses, the borrower must have been employed in the industry for at least 3 years.
Is there any processing fee on Canara Bank Home Loan?
Yes, there is. The processing fee while applying for a Canara Bank Home Loan is 0.50% which is subject to the minimum amount of Rs.1,500 as well as a maximum amount of Rs.10,000.
What security do I need to provide for fulfilling the eligibility criteria of the Canara Bank Home Loan?
The borrower will need to mortgage his/her home or apartment to be able to fulfil the eligibility criteria of the Canara Bank home loan.